Comparing New Providence Acquisition (OTCMKTS:NPAUU) & 3M (NYSE:MMM)

3M (NYSE:MMM) and New Providence Acquisition (OTCMKTS:NPAUU) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Institutional & Insider Ownership

65.3% of 3M shares are owned by institutional investors. 0.3% of 3M shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for 3M and New Providence Acquisition, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
3M	2	4	8	0	2.43
New Providence Acquisition	0	0	0	0	N/A

3M presently has a consensus price target of $127.64, suggesting a potential downside of 6.04%. Given 3M’s higher possible upside, analysts clearly believe 3M is more favorable than New Providence Acquisition.

Valuation & Earnings

This table compares 3M and New Providence Acquisition”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
3M	$32.61 billion	2.30	-$7.00 billion	($12.72)	-10.68
New Providence Acquisition	N/A	N/A	N/A	N/A	N/A

New Providence Acquisition has lower revenue, but higher earnings than 3M.

Profitability

This table compares 3M and New Providence Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
3M	3.08%	112.92%	10.52%
New Providence Acquisition	N/A	N/A	N/A

Summary

3M beats New Providence Acquisition on 8 of the 8 factors compared between the two stocks.

About 3M

3M Company provides diversified technology services in the United States and internationally. The company’s Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles. Its Transportation and Electronics segment provides ceramic solutions; attachment/bonding products, films, sound, and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; semiconductor production materials; data centers solutions; and reflective signage for highway, and vehicle safety. The company’s Consumer segment provides consumer bandages, braces, supports, and consumer respirators; home cleaning products; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products. It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers. 3M Company was founded in 1902 and is headquartered in Saint Paul, Minnesota.

About New Providence Acquisition

New Providence Acquisition Corp. focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to engage in the business of space-based cellular broadband network. The company was incorporated in 2019 and is based in Austin, Texas.